GCSE History

  1. share prices fell dramatcically as investors tried to sell increasing numbers of shares . People rushed to sell , believing that
    shares would become worthless if they held onto them
  2. this flood of shares onto the market pushed
    down their value rapidly . the more shares that were sold , the cheaper they became and therefor the greater the loss to those who sold them
  3. on ...... ..... , october 24th ...... , share prices fell faster than any other time e.g. general electric fell ....... points , and radio fell ..... points
    • black thursday
    • 1929
    • 32
    • 24
  4. what happened to try and stop the crisis , and did it work
    6 of New York's richest bankers agreed to spend $40 million each buying shares . they hoped that this would encourage people to buy shares rather than sell shares . This worked for a short time , and share prices steadied , but then the panic set in again and prices fell further
  5. banks began to
    demand repayment from stockbrokers who had borrowed from them
  6. in turn the brokers had to demand
    money from customers who had bought shares for them on the margin
  7. the customers could only pay back the brokers by selling mores shares . on october the 29th there was a mad
    rush to sell shares at amost any price . over 16 million shares were sold in that one day . the average price of shares fell by 40 points and shareholders lost a total of $8,000 million . share prices contunied to fall until they reached rock bottom in November 1929
  8. what was the immediate cause of the great depression which was though to last through the 1930's
    the wall street crash
  9. rich investors lost
    a great deal of money
  10. poor investors who had borrowed on the margin
    couldnt repay their loans and therefor became bankrupt
  11. banks could
    not cover their losses and began to collapse
  12. as hundreds , tens of thousands , of banks failed it became
    impossible to borrow money
  13. banks also demanded
    repayment of buisness loans in order to avoid becoming bankrupt , all too often however , this resulted in the bank and the local buisness collapsing . all of this rippled outwards in ever widening circles of bankrupticies , job lay offs and reduced demands for goods
  14. these factors began to directly affect the general public . Both agricultural and industrial production fell so
    unemployment rose . to make things worse , wages across the country fell rapidly and people became more and more prepared to work for less
  15. this led to many poor families facing
    starvation and being evicted from their homes
  16. people began to blame ..... .... for the crash . a downward spiral had developed which seemed impossible to stop
    president hoover
Card Set
GCSE History